1-888-Junk Van's current IT issue has lead to negative customer interactions. Marcus Kingo needs to find an affordable IT system that functions well for small businesses without a lot of hassle that allows him to help grow his business. The symptoms of the problem are errors in customer contact information, forgotten emails, manual calculations and billing mistakes. The biggest mistakes originated with the data clerk who accidentally sent the wrong version of the database to the morning operator, which resulted in some jobs that were already booked not showing up in the database. All of these resulted in frustrated customers. Kingo needed to find an inexpensive IT solution that he can implement as quickly as possible to help retain his customers.
Situation Assessment:
The context of the problem is that emails were sent to the drivers that were filled in with incorrect information, which only caused the customers to suffer, resulting in their wanting to switch to another waste removal provider. While the company was busy growing its business from 2008-2009 it ended up outgrowing its current email based system leading to data errors.
List of Plausible Alternative Courses of Action:
There are five possible alternatives to help Kingo solve his current IT problem. He is looking for potential options that include a few key features: a central database that can be accessed remotely so that everyone can work on it simultaneously and he also wants emails to be sent to customers automatically from the system to avoid mistakes and delays.
The first option is Microsoft Access Database. This option can be implemented in a relatively short amount of time and on a small budget. The access can be installed locally on multiple computers but it can also be installed on a centralized server to be accessed remotely through the internet and secure virtual private network (VPN). Licenses cost around $179 per computer and Kingo things he could have the system ready in a couple of weeks. The biggest downside to this option would be that the option would not allow for remote access so the database would have to be updated manually everyday. Also, Kingo would not be able to figure out how to install this program on a shared server and it would require him to either hire someone to install and monitor the system or for Kingo himself to get involved with highly technical IT work, which might still lead him to having to hire someone eventually. The latter issue was not financial feasible for him.
The second option is Custom Application. This web-based system would have someone build a customized application for Kingo's business. It would meet the requirements of having a central database, providing remote access and the system would also have very basic functionality included. On the reverse end, it would take roughly four weeks to build and the upfront cost was around $2,000. This system didn't allow for any changes or adjustments that might be required down the road. Any maintenance would incur a charge of $60 per hour per developer needed and there was no way to find out how much maintenance would be needed exactly. Another downside was that the initial quote did not cover any data migration so there was another additional charge to Kingo's bill. One of the biggest concerns with this option was the fact that a custom made software program could not be viewed beforehand to find out if it has all the options the owner would really require to make the software successful in his business. Kingo runs the risk of spending over $2,000 for a program that is not fully functional for his business with no way out.
Google Docs brings us to our third option. Google Docs would enable Kingo to create text documents, spreadsheets, slide-based presentations and forms. The form application would be the most beneficial for Kingo's business because the forms could be created quickly and shared easily with all employees. All the users could work simultaneously work on the same files without there being any disruption in the information flow. This system would also allow for email distribution, which would be very beneficial for Kingo because his staff could email a link to the form for the customer to fill out and send back to them via the internet without having any miscommunication of data or payment information. Another benefit is that Google Docs is free for up to 10 user accounts and the fee for small businesses is only $5 per user per month or $50 per user per year. Google Docs would also be quick to implement and very easy to use for all of Kingo's employees. There are a few downsides to Google Docs. One of the biggest issues is that data being input into the online spreadsheets cannot be cross-referenced , which would result in all the data being shown in a single, very large form rather than in an organized chart. Another issue is that there is no customer support and cloud computing is still rather new so many people are nervous to rely on it fully. There is also an issue with confidentiality and the thought of Google suspending or canceling the service would prove to be very problematic for their business.
Kingo's fourth option would be to use Platform as a Service (also known as PaaS). This system is delivered on a cloud-computing infrastructure. PaaS allows users to utilize common applications as well as help them build their own unique applications using a shared computing platform that was provided and hosted by a third party. Another benefit is that the vendors of PaaS offer on-site trials so business owners can get a hands on idea of how the system would work for their individual business and implementation, including data migration, would only take about three days. Some of the negatives of using this system mainly involve the cost. Packages range from $300-$600/month depending on how much storage space and how many licenses and applications are needed but if customization was required it would take more time and money as this option charged extra on an hourly basis of $180. Overall, Kingo was not completely sure he possessed the necessary IT skills this system would require.
The final option is the Enterprise Resource Planning (ERP) System. This system is built around a central database that is designed to be accessed remotely and it also is designed for small to medium sized businesses that need full integration of the business process from purchasing to finance to e-commerce. Upon doing some research Kingo found that even though these options were meant for small businesses they were very expensive. The average small firm option is built to have 20-25 users and the cost for licenses would be around $2,500 per user per year. If a company had 22 users it would cost them roughly $55,000 a year. Another disadvantage for Kingo is that the various packages come with many options most of would not benefit Kingo's business model.
Evaluating the Alternatives:
It's important to evaluate all of the options and find which option covers all or most of the issues with Kingo's current system. This new IT system should be able to be accessed remotely, have a centralized database where multiple users can be working on the same documents/forms simultaneously, send emails out to clients automatically and can be set up and ready to use in a short amount of time without breaking the bank.
The logical recommendation for Kingo would to look at the pros and cons of the five different options and find the one that addresses as many of his current issues as possible, while being easy to use and cost effective.
Recommendation:
After hearing the consultant's presentation on the various options we
have at our disposal, as a board member I am left feeling a twinge of doubt as
the validity and solving power these alternatives have for our company. I
think we need to implement a multi step solution to our problem in order to
expedite a system change while maintaining fiscal responsibility. Right now we
have a current IT issue that needs to be solved almost immediately. Looking at
all the options on the table I feel that Google Docs will be the quickest and
easiest to implement as a temporary solution to our problem. It allows us to
create and share forms quickly with multiple users, all of the employees could
work simultaneously on the same file in the collaborative system environment
and Google Docs allows us to set different user profiles so that we can limit
each individuals access to specific documents. Email distribution is also
supported on this feature, which is another key issue for us currently. This
option is also fiscally responsible on the short term. It is free to up to ten
users and there is a small $50 fee per user per year. I think this would help us cut down on data
errors and doing double work with our drivers as well. Now I am suggesting this
as a short-term solution only because we do not know how long this service is
going to be around for. It could go down next month or next year but at the end
of every week one designated employee could download all the files being stored
on Google Docs to their computer as back up just in case something should
happen over night so we do not loose all of our documents in a snap.
Looking forward I think our company needs to have a long-term solution
to this problem as well. The best fit in my mind would be Platform as a Service
(PaaS). It allows us to continue our business on the cloud-computing infrastructure
route as well as utilize both common and custom applications. Also, since this
platform would be provided and hosted by a third party it would take some of the
burden of providing it off of our shoulders, which would benefit us greatly
since we as a company are not tech savvy enough to handle that burden this
early on. Since we have already reached out to a vendor and received an on-site
trial we know much more about how the service works. Mr. Kingo believes he can
build the forms etc. himself, which would be perfect since Mr. Kingo knows
exactly what he is looking for in these various forms and charts. Packages
range from $300-$600 a month but since there is no contract we could
essentially start on the $300 end and work our way up as we continue to
progress as a company to using all the features of the Cadillac package at $600
a month. Initially if we go the $300 route it will cost us $3,600 for the year.
There may also be isolated costs for customization and other IT issues that
will cost us an hourly rate but those are variable and will again only be one-time
fees. I believe this option would be the
best for us in the long run because it allows us to customize as much as we
want while still running on a cloud infrastructure, it doesn’t completely break
the bank so to speak and it would help us to continue growing as a company.
So my final recommendation would be to institute Google Docs as a
temporary solution while we set aside funds to make the transition to a more
permanent solution of using PaaS. I
think this will give us the best shot at keeping our data errors to a minimum,
making sure our clients stay happy, finding time to recruit new clients and allowing
all of our employees to work together more cohesively. Implementing a two step
solution will also allow us to have enough time to set aside funds for our long
term goal while we start wiping the slate clean of errors and double work.
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